Question
1. For the company Ocean, which builds boats, we have the following production function Trabajo (#empleados Por semana) Produccin (botes por Semana) Costo total Costo
1. For the company Ocean, which builds boats, we have the following production function
Trabajo (#empleados Por semana) | Produccin (botes por Semana) | Costo total | Costo fijo total | c. variable total | c. fijo por unidad | c. variable por unidad | c. total por unidad | c. marginal |
1 | 1 | |||||||
2 | 3 | |||||||
3 | 6 | |||||||
4 | 10 | |||||||
5 | 15 | |||||||
6 | 21 | |||||||
7 | 26 | |||||||
8 | 30 | |||||||
9 | 33 | |||||||
10 | 35 |
Assume that the price of labor is $400 per week per employee. The total fixed cost is $10,000 per week.
to.
a. Calculate the total fixed cost, total variable cost, and total cost for each level of production.
b. Calculate the fixed cost per unit, the variable cost per unit, the total cost per unit, and the marginal cost for each level of production.
c. Assuming that the total fixed cost increases to $11,000, indicate which costs would be affected.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started